Verizon(US:VZ)2023-05-23 16:49Summary of Verizon Communications Inc. Conference Call Company Overview - Company: Verizon Communications Inc. (NYSE: VZ) - Event: 51st Annual JPMorgan Global Technology, Media and Communications Conference Call - Date: May 23, 2023 - Participants: Hans Vestberg (Chairman and CEO), Phil Cusick (JPMorgan) Key Points Industry and Technology - 5G Development: Verizon is in the second phase of 5G technology, focusing on innovation and advanced applications, with predictions of significant advancements in the next five years [3][4] - 5G Applications: Key applications include fixed wireless access, private networks, and enterprise solutions, leveraging low latency and high throughput capabilities of 5G [4][8][12] - Consumer Adoption: The company has seen substantial growth in fixed wireless access, adding approximately 400,000 new subscribers in the first quarter [8][20] Business Strategy - Network Infrastructure: Verizon has built a robust fiber network to support its wireless services, with over 50% of radios connected to its own fiber [22][24] - Service Revenue Growth: The company aims to grow service revenue through a new flexible pricing plan called "myPlan," which allows customers to customize their service options [29][30] - Market Segmentation: Verizon is focusing on both high-end and low-end market segments, with recent strategies aimed at improving performance in the lower segment [38][41] Financial Performance - Capital Expenditure: Verizon's capital spending is projected to decrease from nearly $24 billion in 2022 to a range of $18.25 billion to $19.25 billion in 2023, with expectations of stabilization around $17 billion in the future [63][64] - EBITDA Goals: The company has a long-term goal of achieving a 25% EBITDA margin, supported by cost-cutting measures and growth in wireless and fiber services [62][68] Market Position and Competition - Wireless Market Resilience: Despite perceptions of maturity in the wireless market, Verizon believes there are significant growth opportunities driven by innovation and the increasing necessity of wireless services in society [16][19][72] - Churn Management: The company has seen a decrease in churn rates, attributed to the introduction of the myPlan and the bundling of services [46][47] Future Outlook - Growth Potential: Verizon is optimistic about the future of wireless services, citing the importance of mobility, broadband, and cloud services as essential infrastructure for society [16][72] - Business and Consumer Segments: The company expects continued growth in both business and consumer segments, with a focus on leveraging its strong network and customer relationships [57][72] Additional Insights - Consumer Sentiment: Research indicates that consumers value control, simplicity, and value in their service plans, which has influenced Verizon's new pricing strategy [29][30] - Competitive Landscape: The company acknowledges the competitive nature of the industry but remains confident in its ability to maintain a leading position through innovation and customer-centric strategies [72]